(VU-Study-Corner) calculation

Respected fellows,

                      Please tell me how can we calculate it.

 

 Following information are extracted from books of Mr. XYZ

 

Particulars	Rs.
Closing value of stock	40,000
Bad Debts (Given in trial balance)	500
Old provisions (Given in trial balance)	700
Sundry Debtors (Given in trial balance)	44,500
Provision for doubtful debts be increases by 5%
What will be the amount of new provision	?

 

       ► Rs. 2,225

       ► Rs. 2,425

       ► Rs. 1,925

       ► Rs. 3,025

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